The document summarizes key aspects of the Real Estate (Regulation and Development) Act, 2016 (RERA) in India. It outlines that (1) RERA established the Real Estate Regulatory Authority to regulate and promote the real estate sector in an efficient and transparent manner, (2) it defines important terms related to real estate projects and (3) it specifies registration requirements for real estate projects and real estate agents, duties of promoters, rights of allottees and provisions for speedy dispute resolution.

1. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016
NOTIFIED IN THE OFFICIAL GAZETTE ON THE 26TH OF MARCH 2016 (REGISTERED NO. DL — 04/0007/2003-16).
ADV. KHORZAN IRANI IS PLEASED TO PRESENT
**This publication contains general information only, and Adv. Khorzan Irani is not by means of this publication, rendering professional advice or services. Before making any
decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. Vakils AssociatedSM shall not be responsible for
any loss whatsoever sustained by any person who relies on this publication.

2. NOTIFICATION AND LEGAL VALIDITY OF RERA, 2016
▸ Some sections of the RERA 2016 have not been notified yet, as the institutional structures, namely the establishment of the Regulatory Authority and the
Appellate Tribunal are necessary prior to their enforcement. For e.g. projects can only be sold after they are registered with the Authority, thus, in the
absence of the same there would be a vacuum.
▸ §§ 20 and 43 provides that the Authority and the Appellate Tribunal need to be established within 1 year (i.e. by 30th April, 2017) of the
commencement (i.e. 1st May, 2016) of RERA 2016.
▸ The Real Estate Rules of 2017 for the region of Telangana are pending notification. In lieu of this quite a number of sections which refer to the rules may
not be operative and thus unenforceable.
Throughout this document § shall mean section
and §§ shall mean sections.
THE REAL ESTATE ACT, 2016 (HEREINAFTER REFERRED TO AS ‘RERA, 2016’)
41 to 58
2
20 to 39
71 to 78
81 to 92
Effective from 1st May, 2016
Official Gazette on 26th March, 2016
Real Estate Bill
Hon’ble President on 25th March, 2016Lok Sabha on 15th March, 2016Rajya Sabha on 10th March, 2016
40
3 to 19
59 to 70
79 & 80
Effective from 1st May, 2017
Official Gazette on 19th April, 2017

3. A QUICK GLANCE
RERA, 2016
▸ Consists of 92 Sections
▸ Being divided into 10 Chapters
RERA, 2016 deals with:
▸ Registration of Real estate projects and real estate agents
▸ Functions and duties of Promoters
▸ Rights and duties of Allottees
▸ Real Estate Regulatory Authority
▸ Central Advisory Tribunal
▸ The Real Estate Appellate Tribunal
▸ Offences, Penalties and Adjudication
▸ Finance, Accounts, Audits and Reports
Chapter No. No. of Sections Title of Chapter
I 2 PRELIMINARY
II 8
REGISTRATION OF REAL ESTATE PROJECTS
AND REAL ESTATE AGENTS
III 8 FUNCTIONS AND DUTIES OF PROMOTER
IV 1 RIGHTS AND DUTIES OF ALLOTTEE
V 21 THE REAL ESTATE REGULATORY AUTHORITY
VI 2 CENTRAL ADVISORY COUNCIL
VII 16 THE REAL ESTATE APPELLATE TRIBUNAL
VIII 14 OFFENCES, PENALTIES AND ADJUDICATION
IX 6 FINANCE, ACCOUNTS, AUDITS AND REPORTS
X 14 MISCELLANEOUS
** % represents the number of §§
dedicated to each chapter.
X
15%
IX
7%
VIII
15%
VII
17%
VI
2%
V
23%
IV
1%
III
9%
II
9%
I
2%

4. AN ACT TO ESTABLISH THE REAL ESTATE REGULATORY AUTHORITY FOR REGULATION AND
PROMOTION OF THE REAL ESTATE SECTOR AND TO ENSURE SALE OF PLOT, APARTMENT OR
BUILDING, AS THE CASE MAY BE, OR SALE OF REAL ESTATE PROJECT, IN AN EFFICIENT AND
TRANSPARENT MANNER AND TO PROTECT THE INTEREST OF CONSUMERS IN THE REAL ESTATE
SECTOR AND TO ESTABLISH AN ADJUDICATING MECHANISM FOR SPEEDY DISPUTE REDRESSAL
AND ALSO TO ESTABLISH THE APPELLATE TRIBUNAL TO HEAR APPEALS FROM THE DECISIONS,
DIRECTIONS OR ORDERS OF THE REAL ESTATE REGULATORY AUTHORITY AND THE ADJUDICATING
OFFICER AND FOR MATTERS CONNECTED THEREWITH OR INCIDENTAL THERETO.
THE PREAMBLE
LEGISLATORS INTENT

5. OBJECTS AND REASONS FOR RERA, 2016.
BREAKDOWN OF THE PREAMBLE
The real estate sector has grown in the recent years but it has largely been unregulated from the perspective of consumer protection. Though, consumer protection laws
are available, the recourse available therein are only curative and not preventive. This has affected the overall potential growth of the sector due to absence of
professionalism and standardisation.
Ensure Accountability Infuse Transparency
Ensure Fair-play
Reduce Frauds & Delays
Introduce Professionalism
Standardisation
Establish Symmetry of Information
Impose Certain Responsibilities Establish Regulatory Oversight Establish Fast- Track Dispute Resolution Promote Good Governance
AN ACT TO ESTABLISH
The Real Estate Regulatory Authority
TO

6. SOME KEY DEFINITIONS - § 2 OF RERA 2016
▸ §. 2 (b) "advertisement" means any document described or issued as advertisement through any medium and includes
any notice, circular or other documents or publicity in any form, informing persons about a real estate project, or
offering for sale of a plot, building or apartment or inviting persons to purchase in any manner such plot, building or
apartment or to make advances or deposits for such purposes;
▸ §. 2 (e) "apartment" whether called block, chamber, dwelling unit, flat, office, showroom, shop, godown, premises,
suit, tenement, unit or by any other name, means a separate and self-contained part of any immovable property,
including one or more rooms or enclosed spaces, located on one or more floors or any part thereof, in a building or on a
plot of land, used or intended to be used for any residential or commercial use such as residence, office, shop,
showroom or godown or for carrying on any business, occupation, profession or trade, or for any other type of use
ancillary to the purpose specified;
▸ §. 2 (k) "carpet area" means the net usable floor area of an apartment, excluding the area covered by the external
walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes
the area covered by the internal partition walls of the apartment.
▸ §. 2 (n) "common areas" — omitted in this presentation due to length of subsection.
▸ §. 2 (y) "garage" means a place within a project having a roof and walls on three sides for parking any vehicle, but
does not include an unenclosed or uncovered parking space such as open parking areas;
▸ §. 2 (zi) "prescribed" means prescribed by rules made under RERA 2016;
▸ §. 2 (zk) “promoter" - next slide

7. PROMOTER DEFINED UNDER SECTION 2 (ZK)
WHO IS A PROMOTER?
PROMOTER
A person who constructs or causes to be constructed
an independent building or a building consisting of
apartments, or converts an existing building or a part
thereof into apartments, for the purpose of selling all
or some of the apartments to other persons and includes
his assignees
A person who develops land into a project, whether or
not the person also constructs structures on any of the
plots, for the purpose of selling to other persons all or
some of the plots in the said project, whether with or
without structures thereon
An apex State level co-operative housing finance society
and a primary co-operative housing society which
constructs apartments or buildings for its Members or
in respect of the allottees of such apartments or buildings
Any development authority or any other public
body in respect of allottees
Any other person who acts himself as a builder,
coloniser, contractor, developer, estate
developer or by any other name or claims to be
acting as the holder of a power of attorney from
the owner of the land on which the building or
apartment is constructed or plot is developed
for sale
Such other person who constructs any building
or apartment for sale to the general public

8. CHAPTER II - REGISTRATION - § 3
REGISTRATION OF REAL ESTATE PROJECTS
ONGOING PROJECTS FUTURE PROJECTS
REQUIRING REGISTRATION
REAL ESTATE ACT 2016
Area < 500 sq. mtrs.
OR
No. of apartments < 8 inclusive of all phases
Completion Certificate obtained
prior to 1st May 2016
Repair/redevelopment of project
where no new allotment required
EXCEPTIONS
§ 3
DO NOT MANDATORILY REQUIRE
REGISTRATION UNDER THE
REAL ESTATE ACT 2016
HOWEVER THE AUTHORITY MAY
REQUIRE THEM TO REGISTER
§ 3
PROJECTS OUTSIDE
PLANNING AREA
PROJECTS WITHIN
PLANNING AREA

9. APPLICATION LIST OF DOCUMENTS FOR REGISTRATION
CHAPTER II - REGISTRATION - § 4
Authenticated copy of the approvals and commencement t certificate from the competent authority.
Sanctioned plan, layout plan and specification of the proposed project.
Plan of development works to be executed and proposed facilities to be provided.
Location details of the project along with clear demarcation.
Proforma of the allotment letter, agreement for sale and conveyance deed proposed to be signed.
Number, type and carpet are of apartments for sale along with no. of exclusive balcony or verandah.
Number and areas of garage for sale.
Names and addresses of the real estate agents.
Names and addresses of the contractors, architects, structural engineers and other persons concerned with the development of the proposed project.
Declaration supported by affidavit singed by promoter or person authorised by promoter for:
Legal Title, that promoter has legal title.
Land is free from encumbrances or details of encumbrances on such land.
Time period within which project shall be completed.
Seventy percent of amounts realised for the project are to be deposited into separate account maintained by a schedule bank.
All amounts from separate account shall be withdrawn by the promoter after it is certified by an engineer, an architect and a chartered accountant in
practice that the withdrawal is in proportion to the percentage of completion of project.

10. PROCESS INVOLVED IN REGISTRATION - § 4-7
Promoter is required to file an application with the Authority under § 4
A 30 Days time frame, for the Authority to either Grant OR Reject the application, is provided under § 5
GRANTED REJECTED NO RESPONSE
Authority to provide unique
Registration No.
Login ID
Password
WITHIN 7 Days
The Authority is to provide a unique
Registration No.
Login ID
Password
Rejection of application shall be
only after adherence to Principle
of Audi Alterium Partem; Party
must be heard.
If Promoter wants he may start
the process again.
DEEMED GRANTED
Registration is valid till date of
completion as stated by the promoter
in the document/s submitted at time of
filing application under § 4(2)(l)(C).
// Exceptions under § 6
// Revocation under § 7

11. §§ 7 & 8 — THE PREVENTIVE POWERS VESTED IN THE AUTHORITY
In the event of a real estate project being revoked § 8 provides for various mechanisms in which the project can be completed. However, in such a
scenario, the association of allottees shall have the first right of refusal for carrying out the remaining development works.
REAL ESTATE AUTHORITY
REVOKE Revoke registration on being satisfied
Suo Motu / Complaint / Competent Authority
Time > 30 Days written notice + Grounds
Debar the promoter from website
List of Defaulters
Inform other Real Estate Regulatory Authorities
Facilitate remaining construction
Direct Bank to freeze accounts
Such other directions as it may deem necessary
§ 8
§ 7
Consequences
§ 7 (4)

12. ▸ § 9 of the Act provides that any real estate agent/s who engage in selling project/s registered under the RERA, 2016,
can only do so after registering themselves with the Authority. The mechanisms for registration, the fees payable, the
period of registration, subsequent renewal etc. are matters to be detailed vide the Rules.
▸ § 10 of the RERA 2016 provides for the detailed functions and duties of real estate agents.
▸ Highlights of § 10:
Every real estate agent registered under § 9 shall—
(a) not facilitate the sale or purchase of any plot, apartment or building, as the case may be, in a real estate project or
part of it, being sold by the promoter in any planning area, which is not registered with the Authority;
(b) maintain and preserve such books of account, records and documents as may prescribed;
(c) not involve himself in any unfair trade practices, namely:—
(i) the practice of making any statement, whether orally or in writing or by visible representation which—
(A) falsely represents that the services are of a particular standard or grade;
(B) represents that the promoter or himself has approval or affiliation which such promoter or himself does not have;
(C) makes a false or misleading representation concerning the services;
(ii) permitting the publication of any advertisement whether in any newspaper or otherwise of services that are not
intended to be offered.
(d) facilitate the possession of all the information and documents, as the allottee, is entitled to, at the time of booking
of any plot, apartment or building, as the case may be;
(e) discharge such other functions as may be prescribed.
REGISTRATION OF REAL ESTATE AGENTS
CHAPTER II - REGISTRATION - §§ 9 - 10

13. PROMOTERS THEIR DUTIES AND FUNCTIONS
▸ As per § 11 of the RERA 2016, the promoter is required to update all project information as furnished at the
time of application (as provided under § 4) on the website of the Authority.
▸ In addition, § 11 also provides for certain information, which needs to be regularly (quarterly) updated by the
promoter, in order to make an informed choice by the buyer.
▸ Under § 11(4) the condition for discharge of promoter’s duties/liabilities has been stated. Under the proviso to
this sub§ the Promoter’s duties/liabilities to a certain extent has been retained and all other liabilities are
discharged.
▸ As per § 12 the promoter is responsible for the veracity of all information contained in the advertisement
and the prospectus. In case of any loss sustained by any person due to false information contained therein, the
promoter is liable to make good the loss sustained due to the same. The person may also withdraw from the
proposed project, in which case, he shall be returned his entire investment along with interest at such rate as
may be prescribed and the compensation in the manner provided under RERA, 2016.
▸ § 13 provides that the promoter cannot accept a sum more than 10 percent of the apartment / plot cost as
an advance payment / application fees without entering into a registered ‘Agreement for Sale’. Further, the
‘Agreement for Sale’ shall be in a form as prescribed by the rules. Sub-§ 2 of § 13 also states out a few
mandatory particulars to be included in the ‘Agreement for Sale’.
CHAPTER III - FUNCTIONS & DUTIES OF PROMOTERS - §§ 11 - 18

14. …CONTINUED
▸ § 14 provides for any alterations or additions, other than minor alterations or additions that have been duly
recommended and verified by an authorised Architect or Engineer after proper declaration and intimation to
the allottee, in the sanctioned plans, layout plans and specifications of the buildings or the common areas
within the project without the previous written consent of at least two-thirds of the allottees, other than the
promoter, who have agreed to take apartments in such building.
▸ Further § 14 (3) also covers structural defect or any other defect in workmanship, quality or provision of
services or any other obligations of the promoter as per the agreement for sale relating to such development
is brought to the notice of the promoter within a period of five years by the allottee from the date of handing
over possession, it shall be the duty of the promoter to rectify such defects without further charge, within
thirty days, and in the event of promoter's failure to rectify such defects within such time, the aggrieved
allottees shall be entitled to receive appropriate compensation in the manner as provided under the RERA,
2016.
▸ As per § 15 the promoter is not allowed to transfer or assign his majority rights and liabilities in respect of a
real estate project to a third party without obtaining prior written consent from two-third allottees, except the
promoter, and without prior approval of the Authority. This § transfers the current liabilities of the promoter to
the intending promoter, without change in date of completion of the project.
▸ § 16 mandates that the promoter obtains all such insurance as specified by the appropriate government, and
includes but is not restricted to insurance in respect of title of land, building and construction. He is liable to
pay the premium until the time of transferring the title to the association of the allottees.

15. ▸ Under § 17 the promoter must hand over title, title related documents and possession to the allottees/
association of allottees/competent authority within 30 days of obtaining the occupancy certificate. The
promoter is also required to execute a registered deed of conveyance in this regard.
▸ § 18 is, in my opinion, one of the most important §§ in the RERA 2016. It provides for the consequences of
breach on the part of the promoter and secures the customer/allottee/investor. It creates a discretionary power
vested with the allottee to back-out of or continue with the project and be compensated for the delay/
deficiency in service.
…CONTINUED

16. ALLOTTEES DUTIES & RIGHTS
CHAPTER IV - RIGHTS AND DUTIES OF ALLOTTEES - § 19
ALLOTTEE
To obtain information relating to sanctioned plans,
layout plans, and other documents.
To know stage wise time schedule of
completion of the project.
To claim possession of apartment and/or
common areas, as the case may be.
To claim refund, compensation and interest
for grounds listed in the §.
To have necessary documents to be handed
over after possession is received.
To make payments within time specified.
To pay interest, for defaults,
at such rate prescribed.
To participate in formation of association
or society or co-operative society of allottees
or federation of the same.
To take possession within 2 months of the
occupancy certificate being issued.
To participate towards registration of the conveyance.

17. ▸ As per § 20, the Regulatory Authority is required to be established within 1 year of the commencement i.e. by 30th April,
2017. However, for speedy implementation of the Act, § 20 empowers the ‘appropriate Government’ to appoint an
interim Regulatory Authority, until the establishment of the full time Authority.
▸ The Authority: 1. Chairperson and 2. not less than 2 whole time members to be appointed by Appropriate Government.
▸ Appointment of persons to the Regulatory Authority is to be in accordance with § 22.
▸ Apart from the day to day implementation of RERA 2016 and the Rules and Regulations made thereunder the immediate
responsibility of the Regulatory Authority are:
a) Registration of the real estate project and the real estate agent;
b) Extension of registration of the real estate project and its revocation;
c) Renewal of registration of the real estate agent and its revocation;
d) As per § 34 the Authority is responsible to to maintain a website of records for public viewing of all projects
registered with the Authority including details of projects as specified in RERA 2016 and the rules and regulations to be
disclosed on the website; details of promoters with photographs of promoters; details of projects in case of revocation
of registration or where any project is penalized under RERA 2016; details of agents registered under the Act including
his photograph and also of those agents whose registration has been revoked.
e) As per § 71 the Authority is required to appoint one or more ‘adjudicating officer’ in consultation with appropriate
Government.
f) As per § 85 the Regulatory Authority is required to notify Regulations within 3 months of establishment.
g) As per § 32 the Regulatory Authority is also required to make recommendations on various matters for the growth
and promotion of a healthy, transparent, efficient and competitive real estate sector.
AUTHORITY THE REAL ESTATE REGULATORY AUTHORITY
CHAPTER V - THE REAL ESTATE REGULATORY AUTHORITY - §§ 20 - 40

18. ▸ § 31 of the Act provides for filing of complaint by an aggrieved with the Regulatory Authority. The form and
manner and the fees payable for filing the complaint are to be specified by Rules to be made by the
appropriate Government.
▸ § 29 provides that the Authority should endeavour to dispose of the questions / complaints as expeditiously as
possible but not later than sixty days from the date of filing the same. However, where it could not be disposed
of during the said period the Authority is required to record its reasons for the same.
▸ Power to call for information and conduct investigation. Under § 35 the Authority shall have the power to call
for discovery and production of books of accounts and other documents, the Authority may summon and
enforce the attendance of persons and examine them on oath.
▸ Under § 36 the Authority has the power to issue interim order without prior notice to the aggrieved party in
case, during an inquiry, it is satisfied that the party is acting in contravention with the Act.
▸ Under § 37 the Authority has been vested with the power to pass such directions as may be necessary for the
Authority to discharge
▸ Under § 39 the Authority may rectify and/or amend, any mistake apparent from the record of, its orders within
2 years of issuing the order. Provided no such amendment may be made is an appeal has been preferred.
Rectification should not after substantive part of the order.
…CONTINUED

19. ▸ To be established, by the Central Government, by notification.
▸ The ex-officio chairman shall be Minister to the Government of India in charge of the Ministry of the Central Government
dealing with Housing.
▸ Other technical requirements of the constitution are embodied in sub-§ 3 and 4 of § 41.
▸ The function of the council is to advice and recommend the Central Government on the following:
1. matters concerning implementation of RERA, 2016
2. major questions of policy
3. towards protection of consumer interest
4. foster the growth and development of the real estate sector
5. on matters assigned to it by Central Government
CENTRAL ADVISORY COUNCIL ESTABLISHMENT AND FUNCTIONS
CHAPTER VI - CENTRAL ADVISORY COUNCIL - §§ 41 - 42

20. ▸ As per § 43, the Appellate Tribunal is required to be established within 1 year of of the commencement of § 43
i.e. by 30th April, 2017. However, for speedy implementation of the Act, § 43 empowers the ‘appropriate
Government’ to designate an existing Appellate Tribunal (under any other law in force) to function as an
Appellate Tribunal under the Act.
▸ The Appellate Tribunal is a quasi-judicial body, which is empowered to hear appeals from the orders / decisions
/ directions of the Regulatory Authority or the Adjudicating Officer, as the case may be. The form and manner
and the fees payable towards filing the appeal and the manner for hearing and disposing the appeal are to be
provided by Rules to be made by the appropriate Government.
▸ Appeal to be presented before tribunal must be within 60 days (extension may be granted with sufficient
cause) from the date on which a copy of the direction or order or decision made by the authority or the
adjudicating officer is received by the appropriate government or the competent authority or the aggrieved
person.
▸ Copy of every order made by the Appellate Tribunal to be given to the parties and to the Authority or the
adjudicating officer.
▸ Vacancy shall be filled by such person appointed by the Central Government in accordance with RERA, 2016.
THE REAL ESTATE APPELLATE TRIBUNAL ESTABLISHMENT, REMUNERATION, TERM, VACANCY AND POWERS
CHAPTER VII - THE REAL ESTATE APPELLATE TRIBUNAL - §§ 43 - 58

21. ▸ Powers of the Tribunal; Powers of a civil court; Power to regulate its own procedure; Not bound by Indian
Evidence Act, 1872; Not bound by Civil Procedural Code, 1908 but guided by principles of natural justice;
summoning person/s, examining person/s before oath, requiring discovery and production of documents,
receiving evidence affidavits, reviewing its decisions, deciding application ex-parte, dismissing application, etc.
▸ All proceedings before the Tribunal shall be deemed judicial proceedings within meaning of §§ 193, 219 and
228 of IPC, 1860. The tribunal shall be deemed to be a civil court for purpose of sec 195 and chapter XXVI of
Code of criminal procedure 1973.
▸ Appeal to orders made by Tribunal lies before the High Court within 60 days of receiving communication of
such order (extension sufficient cause).
…CONTINUED

22. COURT JURISDICTION
JUDICIARY’S CONTROL JURISDICTION, COMPLAINT, REVIEW, REFERENCE AND APPEAL
DISPUTE
THE REAL ESTATE REGULATORY AUTHORITY
CIVIL COURT
Barred § 79
THE REAL ESTATE APPELLATE TRIBUNAL
WITHIN 60 Days of receiving communication of order - § 44
// exception sufficient cause
ADJUDICATING OFFICER
§ 71
adjudging compensation
§§ 12, 14, 18 and 19
WITHIN 60 Days of receiving communication of order - § 58
// exception sufficient cause
HIGH COURT
§ 58
CONSENT OF PARTIES NO CONSENT OF PARTIES
HIGH COURT
§ 58
The Regulatory Authority may
review its own decision
§ 53(4)(e)
Competition
Commission
of India
§ 38(3)
Reference is certain cases
Consumer Forum not barred

23. ▸ § 59 prescribes that in case of breach on the part of the promoter to adhere to § 3 of RERA 2016, such promoter shall
be liable to a maximum penalty of 10% of the estimate cost of the real estate project.
▸ § 59(2) enhanced punishment/fine leviable on the promoter who contravenes with provisions of sec. 3 and/or order
under § 59(1) shall be liable to imprisonment for a term which may extend up to 3 years or with fine which may
extend to further 10% of estimate cost of the real estate project or with both.
▸ For providing false information § 4 the promoter shall be liable to a maximum penalty of 5% of estimate cost of the
real estate project.
▸ For any other contravention the promoter shall be liable to a maximum penalty of 5% of estimate cost of the real
estate project.
▸ § 62 the penalties for Real Estate Agents in breach with §§ 9 and 10 is prescribed at ₹ 10 000.00 per day for every day
of default during which such default continues which may cumulatively extend upto 5% of estimate cost of the real estate
project.
▸ Under §§ 64, 66 and 68 the promoter, real estate agent and allottee, respectively, shall be punishable with imprisonment
in the event of failure to comply with the orders of the Appellate Tribunal.
▸ § 69 covers the cases wherein offence/s are committed by a company.
▸ § 70 deals with compounding of offences.
▸ § 71 deals with the establishment of Adjudicating officer, whose duty is, to adjudicate the compensation under §§ 12, 14,
18 and 19 of RERA 2016. While § 72 deals with factors to be taken into account while adjudicating the compensation.
CONSEQUENCE OF BREACH OFFENCES, PENALTIES AND ADJUDICATION OF COMPENSATION
CHAPTER VIII - OFFENCES, PENALTIES AND ADJUDICATION - §§ 59 - 72

24. ▸ § 73 provides that after due appropriation made by the parliament the Central Government may, as it considers
necessary, make to the Authority grants and loans.
▸ § 74 provides that after due appropriation made by the State Legislature the State Government may, as it
considers necessary, make to the Authority grants and loans.
▸ Real Estate Regulatory Fund - to be created under § 75 - is to be used for the following purposes:
1. Salaries and allowances payable to chairperson and other members, the adjudicating officer and the administrative
expenses including salaries and allowances payable to the officers and other employees of the Authority and
Appellate Tribunal.
2. Other expenses of the Authority in connection with discharge off its functions and not the purpose of RERA 2016.
▸ Under § 76(1) all penalties collected by Authority or Appellate Tribunal, within union territories, is to be credited to
Consolidated Fund of India. Under § 76(2) all penalties collected by Authority or Appellate Tribunal, within State
territories, is to be credited to such account as the State Government may specify.
▸ Budget and annual reports along with its auditing shall be prepared by the Authority and audited by Comptroller and
Auditor General, under §§ 77 and 78.
MONETARY CONTROL FINANCE, ACCOUNTS, AUDITS AND REPORTS
CHAPTER IX - FINANCE, ACCOUNTS, AUDITS AND REPORTS - §§ 73 - 78

25. ALLOTTEE PROMOTER
EFFECT OF RERA 2016 ON THE MARKET
▸ Increased assertion on the timely
completion of projects and delivery to
consumer.
▸ Safeguarding of funds as 70% of sales
receipt will now be locked in escrow.
▸ Faster dispute resolution mechanism
through dispute settlement forums
and Appellate tribunal.
▸ A regulated broker.
▸ Sale on Carpet Area to help improve
transparency.
▸ Establishment of new web based
portal for transparency and easy
access to information.
▸ Increased scope for eliminating
casual operators.
▸ Greater visibility into developers’
delivery performance.
▸ Higher investment in the sector.
▸ Opportunity for professionals to
stand out.
▸ Increase in prices of properties due
to reduced competition.
▸ New project launches might be
limited as new developers might not
want to launch without obtaining
sanctions/approvals which could take
2-3 years.

26. JUDICIARY
THE PRECEDENTS

27. THE PRECEDENTS - JUDICIARY
LANDMARK JUDGEMENTS - MAHARASHTRA
▸ Neelkamal Realtors Suburban Pvt. Ltd. and another versus Union of India and others
In the High Court of Judicature at Bombay Ordinary Original Civil Jurisdiction Writ Petition No. 2737 of 2017.
▸ Ganesh Lonkar v D.S. Kulkarni Developers Ltd.
Before the Hon’ble Maharashtra Real Estate Regulatory Authority at Bandra (East), Mumbai Case No. CC/005/317.
▸ Lavasa Corporation Limited Vs. Jitendra Jagdish Tulsiani and another
In the High Court of Judicature at Bombay Civil Appellate Jurisdiction Second Appeal No. 9717 of 2018.

28. THANK YOU FOR YOUR VALUABLE TIME & CONSIDERATION
Bungalow No. 8, Nehru Marg,
Ghorpadi, Pune 411 001.
1st Floor, Amy Villa, Plot No. 675,
Dadar Parsi Colony Rd. 14,
Mumbai 400 014.
Email:
khorzan@gmail.com
Telephone Numbers:
+91 9359 771713
FOR QUERIES YOU MAY CONTACT ME AT:
Website:
WWW. K H O R Z A N .COM